Crude Oil Slipped from 4- Years Top – A Quick Trade Plan

Early this week, the crude oil soared to fresh 4- years high, crossing above the psychological resistance level of $72. However, a surprise.


Early this week, the crude oil soared to a fresh 4-yearhigh, crossing above the psychological resistance level of $72. However, a surprise build up in crude oil stockpiles in the United States weighed on prices. For the moment, it’s trading near $71.54 and it looks like we may have a forex trading signal for crude. Are you ready for it?

On Wednesday, the EIA reported a massive build of 5.8 million barrels inventories, compared to analysts’ expectations for a decrease of -2.5 million barrels.

Secondly, investors are pricing in the sentiments that Organization of Petroleum Exporting Countries (OPEC) may decide to raise oil production to make up reduced supply from Iran and Venezuela.

WTI Crude Oil - 2 Hour Chart

Looking at the technical side, crude oil has entered the strong oversold zone. Here’s an upward trendline which can support oil near $71.25. So, here’s the deal, we may see a bullish reversal in crude oil if it manages to stay bullish above $71.25.  

Alternatively, a violation of $71.25 can push it lower towards $70.60.

Support     Resistance

71.35          72.17

71.1           72.42

70.69      72.83

Key Trading Level:    71.76

WTI Crude Oil – Trading Plan

The idea is to stay bearish below $71.75 to target $71.25. Second sell position will be preferred only below $71.20 to target 70.80. Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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